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Pay Per Click Google Ads - IQwaterloo

Understanding The Pay Per Click Google Ads System

Google’s AdWords is the main source of online advertising revenue for Google. The higher the quality score of your website, the more likely it will be clicked by a visitor to your site. Google AdWords has many payment options, including Pay Per Click (PPC), Cost Per Million (CPM), and Bidvertiser Network (BNC). The AdWords system also allows advertisers to bid for keywords by using bid modifiers, which can be set by the advertiser, in order to control how much they are willing to pay for a particular keyword.

The average cost-per-click (CPC) on Google AdWords is $1.00 for the Google Search Network and even less for the Google Display Network. Generally, small to medium-sized businesses will spend at least $9000 a month on Google AdWords, which does not include other additional expenses, such as software.

Most small businesses don’t have a dedicated team of Web professionals and Web marketing experts to create new ads, so they must rely on a large group of employees and other personnel to do the work. These employees are paid either by commission or by the hour.

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Payment Models Of Pay Per Click Google Ads

Pay Per Click Google Advertising

Google AdWords offers two basic payment models: Pay Per Click (PPC) and Cost Per Mile (CPM). Advertisers bid on keywords that they want to appear for a number of different reasons. Some advertisers will bid for a high search term phrase that is relevant to the product or service that they offer, and some will bid for keywords that are more likely to turn a visitor into a buyer. Other advertisers, however, will bid simply because they want to be part of the Google Ads program and are willing to spend more money than their competitors.

The Features That You Will Get From Pay Per Click Advertising Programs


Pay Per Click advertising programs generally require advertisers to pay for each click of an ad, regardless of whether the click resulted in a sale or a lead. Google AdWords, on the other hand, charge advertisers based on the number of times a visitor viewed the ads.

The Google AdWords system is based upon the premise that a visitor who saw an ad and did not purchase it or enter contact with the advertiser will not likely return. Therefore, the system awards points or premiums to advertisers based on the number of times their ads were viewed.

In the Google AdWords system, advertisers are rewarded for having ads that are both highly relevant to the products or services that they are selling, as well as having ads that are placed in the right positions in the right portions of the Google search results page.

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The higher up on the Google search results page, the more ads are placed, and the higher their relative prices will be. Therefore, if an advertiser wants his ad to appear at a high place, he would have to pay more money. Unless he has a Higher Quality Score and the same Bid Rate as his competitor.

PPC Growth

Relevancy is one of the many factors that go into determining an advertisers’ Google Ads costs. Other important factors include the companies’ ability to draw visitors, the demographics of those visitors, the rates at which advertisers bid on keywords, the number of backlinks, the search volume, and the number of people who are directed from the site to the Google search results page.

Because of these factors, Google Ads can be profitable when an advertiser places his ads in the right areas of the Google search results page. In addition to relevancy, advertisers are also charged according to their per click spend. Google Ads costs are determined by the number of unique visitors that see an ad and the number of times the ad is clicked.


Another factor that affects the cost per click-through rate, as well as the cost per thousand impressions is the relevance of the advertisement with respect to the keywords used to search for information. Thus, ads that are relevant will get more clicks and will rank higher in the search results.

But the more relevant a campaign is, the higher its cost will be. The relevance scale can be thought of as a meter that measures the effectiveness of an ad in relation to keywords used in the search. Ads that are more relevant will receive lower costs, while those that are not relevant will cost more.

Finally, it must be said that the cost per click-through rate, ad rank formula, and the keywords that describe a website also have a direct impact on the cost that an advertiser will pay. The more popular a website is, the more likely it is that an advertiser will use the services of an ad agency to advertise that website.

The more popular a website is, the more likely it is that people will search for something in the search results, thus reaching a high peak of potential customers. Advertisers will pay more when they have reached a high peak of potential customers, but they can also expect to pay less if their peak of potential customers has diminished since the start of the advertising campaign.

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